Lenny Dykstra: Back in the money game
Former Phillie and sometime stock-picker Larry Dykstra says it's time to buy options on Microsoft.
In another sign the market - or maybe just rampant speculation - is back, former Phillie Lenny Dykstra is back recommending stocks, after a month on the injured-reserve list.
"Who is going to hit the ball up the middle when the count is full and the country is facing a tough pitcher? Microsoft," Dykstra writes today in his first "Nails on the Numbers" newsletter since suspending publication amid his well-publicized money troubles April 20. His full report here.
He loves Microsoft's low forward price-to-earnings ratio (11), big cash pile ($24 billion) and recent layoffs (cost-cutting.) Dykstra doesn't see decline, just value pricing. "Therefore, I am going all the way out to 2010 and placing a limit order to buy 10 contracts using the January $15.00 dollar strike price," with a limit order at $"5.90 or better." Play ball!